The failure to create a unitary European patent is holding SMEs back

This is a guest post by Michael Setton, CEO of Sensaris and member of the
Association for Competitive Technology (ACT)

One of the most famous boxers of all time said that it isn't the
mountains ahead to climb that wear you out; it's the pebble in your
shoe. For small and medium size enterprises (SMEs), like mine, who
are driving ICT Innovation in Europe, failure to create a unitary
patent has been wounding our feet for too long, way too long.

Innovation is a risky business. European startups and tech
entrepreneurs -- myself included -- need an overall environment
that encourages us to take those risks and rewards us for doing so
successfully. We need an efficient and standardised regulatory
framework that provides us with flexibility and enables us to grow.
After all, my success is based solely on my product, and what's its
value if I am not able to protect it?

I currently work in France but had to go abroad to look for a
better patent system. I filed my patents in the United States
because there isn't an equivalent system in Europe. At a time where
European competitiveness is at stake, with entrepreneurs operating
in tough market conditions and faced with even tougher competition,
the European Union needs to support those that chose to try and
innovate at home. I can't think of a better way than settling once
and for all the long awaited "unitary" patent.

There tends to be a notion that protecting intellectual property
only benefits major corporations. In fact, it is us, SMEs, who
value the IP system the most because of the role it plays in access
to capital and business development.

What can a better patent protection in Europe bring
me?
First, my company will be able to cut costs. The current patent
system is extremely expensive: I have to request validation in each
Member State. Just imagine the translation and administrative
costs! According to the current proposal, "an EU patent validated in 13 countries costs as much
as €20,000 (£16,000), of which €14,000 (£11,100) for translation.
This makes an EU Patent more than 10 times more expensive than an
American patent that costs about €1,850 (£1,460)".

A common patent system will not only allow me to save
translation costs, it will also be much more efficient when it
comes to legal enforcement of patent rights. At the moment, it's
just too expensive. Particularly if the infringement has taken
place in several countries and rights have to be enforced in
different legal systems before different courts.

Second, a strong patent protection in Europe will increase
access to funds. Having a robust patent protection regime in place
will help us to attract the much needed capital to continue to
innovate. In a nutshell; it is only worth investing in our
businesses if we are able to prove that future inventions will be
legally protected.

Third, it will serve as leverage. A strong patent regime will
allow us to protect our inventions against competitors that can
otherwise poach and exploit our ideas. It is really that
simple.

Finally, it will provide my company with the flexibility I
need. I would be able to rely on an EU patent, instead of
having to produce and sell my inventions as products on the mass
market -- relying principally on trade secrets and copyright.

The EU patent saga
After more than four decades of negotiations there has been some
progress but not enough for the EU "patents package" to enter into
force, starting with the discussions at the European Parliament on September.

The EU patent saga, once saddening is now becoming maddening. It
has been 12 years since I started my company Sensaris and I am
proud that we are now active in 25 countries. We have participated
in three European projects and wherever I go, I try to support the
European technology sector as a whole, not just my company brand.
However, I don't feel Europe is supporting me.

There is a lot of talent here, let's encourage it with the
policies we need. If we don't, much will be lost in the process.
And let's face it; you just can't climb a mountain with wounded
feet, however much you want to reach its peak.